PRODUCTIONAND

OPERATIONS
MANAGEMENT
Chapter 1
INTRODUCTION TO
PRODUCTION AND OPERATIONS
MANAGEEMNT

Chapter 1
Introduction to Production and
Operations Management

Production is the process by which raw

materials and other inputs are converted into
finished products.

Himalaya Publishing House

Production and Operations Management

by K. Aswathappa & K. Shridhara Bhat

Chapter 1
Introduction to Production and
Operations Management

Production system model comprises:

i. Production system,
ii. Conversion sub-system and
iii. Control sub-system.

Himalaya Publishing House

Production and Operations Management

by K. Aswathappa & K. Shridhara Bhat

Chapter 1
Introduction to Production and
Operations Management

A Production System Model

Himalaya Publishing House

Production and Operations Management

by K. Aswathappa & K. Shridhara Bhat

Chapter 1
Introduction to Production and
Operations Management

Operation managers are required to make a series

of decisions in the production function.
The decisions made by operation managers about
the activities of production systems tend to fall
into three general categories, viz.,
i. Strategic decisions
ii. Operating decisions
iii. Control decisions

Himalaya Publishing House

Production and Operations Management

by K. Aswathappa & K. Shridhara Bhat

Chapter 1
Introduction to Production and
Operations Management

POM Decisions and their Applications

Himalaya Publishing House

Production and Operations Management

by K. Aswathappa & K. Shridhara Bhat

Chapter 1
Introduction to Production and
Operations Management

Importance of Production Function

Production function can offer competitive advantage to
a firm in the following areas:
Shorter new-product-lead time
More inventory turns
Shorter manufacturing lead time
Higher quality
Greater flexibility
Better customer service
Reduced wastage
Himalaya Publishing House

Production and Operations Management

by K. Aswathappa & K. Shridhara Bhat

Chapter 1
Introduction to Production and
Operations Management

Production Management and Operations

Management

Production management refers to the application of

management principles to the production function in a
factory. In other words, production management involves
application of planning, organising, directing and controlling
to the production process.
Operations management is the process in which
resorurces/inputs are converted into more useful products
Production management and operations management are
differentiated based on tangibilities of finished
goods/services

Himalaya Publishing House

Production and Operations Management

by K. Aswathappa & K. Shridhara Bhat

Chapter 1
Introduction to Production and
Operations Management

Characteristics of Modern Production

and Operations Function
1.
2.
3.
4.

Manufacturing as Competitive Advantage

Services Orientation
Disappearance of Smokestacks
Small has Become Beautiful

Himalaya Publishing House

Production and Operations Management

by K. Aswathappa & K. Shridhara Bhat

Chapter 1
Introduction to Production and
Operations Management

Recent Trends in
Production/Operations management
1. Global Market Place
2. Production/Operations Strategy
3. Total Quality Management (TQM)
4. Flexibility
5. Time Reduction
6. Technology
7. Worker Involvement
8. Re-engineering
9. Environmental Issues
10. Corporate Downsizing (or Right Sizing)
11. Supply-Chain Management
12. Lean Production

Himalaya Publishing House

Production and Operations Management

by K. Aswathappa & K. Shridhara Bhat